Should You Buy Gold Now?

Gold and Jewelry Company Phu Quy listed the ring gold price at 87.9 – 89 million VND/tael buying and selling rate.

Bao Tin Minh Chau Company listed the ring gold price at 87.48 – 88.98 million VND/tael.

Sai Gon Jewelry Company listed the ring gold price at 87 – 88.5 million VND/tael.

The SJC gold bar price was listed by the state-owned banks (Vietcombank, Vietinbank, BIDV, Agribank) at 89 million VND/tael. Enterprises listed the SJC gold bar price at 87 – 89 million VND/tael buying and selling rate.

At the same time, the world gold price was listed at 2,747 USD/ounce, equivalent to 83 million VND/tael.

The ring gold price has been increasing continuously, following the world gold price, while the SJC gold bar price has been adjusted according to the selling price of the State Bank of Vietnam. For many months, it has been difficult to buy SJC gold bars or rings through official channels, so many people have turned to the “black market.” The black-market price is 500,000 – 1 million VND/tael higher than the listed price.

Commenting on the continuous gold price increase recently, economic expert Nguyen Tri Hieu attributed the sharp rise in ring gold prices to the impact of world prices and the stability of gold bar prices due to control measures, while ring gold prices fluctuate with the market. In addition, the demand for gold among Vietnamese people remains high as gold is considered a valuable asset and a good savings instrument.

The recent scarcity of gold bars and rings in the market could be due to people hoarding gold and not selling, waiting for higher prices. Meanwhile, the State Bank of Vietnam has not shown any signs of allowing gold enterprises to import gold materials. This situation has persisted for over a decade. In addition, the discovery and disruption of gold smuggling rings by the police have further tightened the supply of gold materials in the market.

“If the ring gold market continues to surge, I believe the State Bank of Vietnam will likely intervene,” predicted Mr. Hieu.

Gold expert Tran Duy Phuong also attributed the sharp increase in domestic gold prices to the influence of the international market. In recent days, world gold prices have risen rapidly, surpassing the 2,700 USD/ounce mark, as major central banks worldwide reduced interest rates. “With low-interest rates, investors will pour capital into gold instead of foreign currencies or government bonds. In the past, every time interest rates were cut, gold received support,” said Mr. Phuong. In addition, gold prices rose due to escalating tensions in the Middle East.

Mr. Phuong advised people not to buy gold unless necessary. Those who have already made a profit from buying gold earlier should consider selling when they reach their desired profit level.

“Buying domestic gold now is very risky as it is easy to buy at the peak if world gold prices reverse sharply in the short term. And if you sell and then the price continues to rise, you won’t regret it because the profit from ring gold from the beginning of the year to now is 25 – 30%, which is an attractive level,” advised Mr. Phuong.

According to economic expert Dinh Trong Thinh, plain gold rings were often bought as gifts in the past, but now many people are looking to buy them as assets. However, as gold prices are currently high and unpredictable, people should not buy or sell large amounts of gold.

In the currency market, the State Bank of Vietnam listed the central exchange rate at 24,255 VND/USD. At commercial banks, the exchange rate was at 25,197 – 25,467 VND/USD buying and selling rate.